Week Ahead – Market Volatility to Speed Up？

Author – Connor Woods, Senior Market Analyst

Date: September 12th– September 16th 

Inflation has dominated the markets so far this year, with staggering Consumer Price Index figures being released all over the world. This weeks attention turns to the most volatile CPI release in the economic calendar this month, U.S CPI.

U.S Inflation

Stealing the show this week is undoubtedly the U.S Consumer Price Index report due on Tuesday. The markets have been shaken this year by the worryingly high inflation figures released in this monthly report. It remains more than three times the Feds 2% target.

The core CPI inflation increased by 0.3% last time round. Optimistic traders will be looking for this report to show inflation has finally ‘peaked’, which would be a reading of 0% or below, which could provide more relief to the markets. However, Jerome Powell has made it clear underlying inflation remains high.

U.K in the Spotlight

There are important data releases coming from the UK next week. It begins on Monday when the UK releases its Gross Domestic Product (GDP) change month on month. This is the primary measure of economic growth in an economy. Last time out, the UK economy shrunk 0.6% month on month, which sparked widespread fear over the UK economic prospects.

The UK will also release its CPI year-on-year figures. Last month the figure was a shocking 10.1%, and there is real concern the UK will post double digit inflation yet again. Many of the large banks have predicted inflation to reach 15%!

Everyone at Zenfinex wishes you the best trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

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